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Ava Risk Group CEO Rob Broomfield | Presenting at Coffee MicroCaps forum

Ava Risk Group Limited (ASX: AVA) CEO, Rob Broomfield, will provide an introduction to Ava Risk Group as part of a Coffee MicroCaps forum tomorrow, Thursday 23 June at 9.00am AEST.

If you are interested in attending, please register via the Zoom Webinar link below. The presentation and Q&A will run for 30 minutes.

https://us02web.zoom.us/webinar/register/WN_b0L7vPdvRtKD_BHOWa7OlA

Review presentation here.

Investor Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

 

Contract to supply and install Fibre Optic Intrusion Detection System at major North American energy facility

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise it has secured a contract for the supply and installation of a Fibre Optic Intrusion Detection System at a major North American energy facility. The order is for approximately US$0.5 million (A$0.7 million) and the supply of material is expected to be fulfilled in the current financial year.

It is the largest energy sector sales order the Company has won and represents a significant strategic milestone in expanding its advanced sensing solutions to the energy industry. Detection performance, reliability and flexible integration were all important considerations in the customer selecting Ava Risk Group’s solution.

Commenting on the win, Ava Risk Group Executive Vice President Global Security, Jim Viscardi, said “This contract further validates the quality of our advanced sensing solutions in safeguarding critical energy assets. We are aggressively pursuing opportunities in the energy sector and expanding our presence in North America, our largest target market, where we continue to build out our sales infrastructure and capability.”

The order affirms the investment Ava Risk Group has made to grow its business development capability in targeted sectors and regions, building on first half successes in solar installations and offshore wind farms. This includes the first European submarine power cable for an offshore wind farm, resulting in current year sales orders in energy of more than A$1.8 million.

Jim Viscardi was recently appointed as Group Executive Vice President Global Security having previously been Vice President Americas. This reflects the Company’s focus on targeting the largest global markets for its advanced sensing solutions, as well as Jim’s proven capability in leading sales and business development teams in the Security industry.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:
Investor & Media Enquiries
Alexandra Abeyratne Citadel-MAGNUS
aabeyratne@citadelmagnus.com +61 438 380 057

 

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Q3 FY2022 Trading Update

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its Q3 FY2022 Trading performance:

  • Q3 FY2022 confirmed sales orders of $2.8m, resulting in year to date (“YTD”) sales orders of $13.0m (up 17% on the prior year, excluding prior year orders from the Indian Ministry of Defence (“IMoD”) contract)
  • Confirmed sales order backlog of $5.0m of which $2.6m is expected to be fulfilled during Q4 FY2022
  • Aura IQ successfully integrated with fire detection solution and purchasing approvals within the global mining company anticipated to be completed within Q4.
  • BQT sales orders boosted by post lockdown recovery and anticipated acceleration of new dormakaba Global Framework Agreement
  • Approval granted at Extraordinary General Meeting for return of capital of approximately $7.566m or $0.03114 per share
  • Management reaffirms FY2022 revenue guidance of $31.3m to $33.3m due to a strong pipeline and expected performance in Q4.

Ava Group CEO Rob Broomfield commented: “Though Q3 was slightly quieter in terms of sales order intake, we remain confident in the quality of our sales opportunity pipeline and expected performance in Q4 and into FY2023.  In the near term, we look forward to receiving our first commercial order for Aura IQ following the successful integration of our conveyor monitoring solution with existing fire detection capability. We also continue to manage supply chain availability, particularly for components sourced from China.

During March, we exhibited at the ISC West Trade Show in the United States, one of the largest security trade shows in the world. After the trade show had been impacted by Covid-19 in the previous two years, this show reaffirmed our belief of significant growth in the sector. It was very successful in terms of reconnecting in person with our customer base for both the FFT and BQT segments as well as showcasing our enhanced solutions to prospective customers. For BQT in particular, the show provided an opportunity to meet with dormakaba’s global leadership team to accelerate implementation of the Global Framework Agreement signed in December 2021”.

Q3 FY2022 confirmed sales orders
During Q3 FY2022 the Technology Division received confirmed sales orders of $2.8 million, resulting in YTD sales orders of $13.0 million.  YTD sales order intake reflects growth of 17% on the prior year (excluding prior year orders from the IMoD contract), driven primarily by increased sales orders from FFT.  Sales orders received during Q3 were not as strong as the previous two quarters attributable in part to a seasonal slowdown in the US security market in January and slight delays in the timing of some expected orders.  Q4 has started strongly and the Company is confident that order intake in Q4 will align with the run rate during the first two quarters.

During Q3 FY2022 we increased the number of FFT systems signed to maintenance contracts.  As at the end of Q3, a total of 49 systems have been signed to maintenance agreements using the existing sales and support team.

The Company carries an order backlog of $5.0 million which represents sales orders received that will be fulfilled in the future.  It is anticipated that $2.6 million of the backlog will be fulfilled during Q4 FY2022.  The backlog does not include any additional sales orders under the IMoD contract, or sales orders expected to be received and fulfilled in Q4. As previously advised, the Company is not expecting any contribution from the IMoD contract in FY2022.

Chart 1 – Technology Division Sales Orders

Chart 2 – Sales Order backlog fulfillment (excluding IMoD)

 

Update on Aura IQ
As advised in February 2022, FFT has been requested by a global mining company to integrate its advanced conveyor condition monitoring solution with a fibre optic-based fire detection solution. Ava is pleased to advise that the qualification of Aura IQ with the fire detection fibre optic cable was successfully completed by the end of Q3.  Based on the successful integration, purchasing approvals within the global mining company have recommenced and are expected to be completed within Q4.

Testing of the integrated condition monitoring and fire detection solution is scheduled to commence with a second major mining company in May.  The outcome of the testing will result in qualification of the solution on underground conveyors. The integrated condition monitoring and fire detection capability continues to generate significant commercial opportunities for global partnerships to support the mining industry.

Update on Global Framework Agreement with dormakaba
As advised in December 2021, the Company signed a Global Framework Agreement with dormakaba for the supply of BQT products and services. During Q3, BQT received an initial stock order to provide inventory for the launch of BQT products across dormakaba’s global network. Planning is advanced with dormakaba for the global launch including appropriate training and supporting documentation for the product range.  The initial stock order is expected to be fulfilled in Q4, with subsequent orders to generate incremental growth into FY2023.

Return of Capital
Ava Risk Group Limited held an Extraordinary General Meeting (“EGM”) on 22 April 2022 where shareholder approval was sought for a capital return of $7.567 million or $0.03114 per fully paid ordinary share.  Shareholders approved the resolution, and the Company will return capital to its shareholders based on a:

  • record date of 28 April 2022; and a
  • payment date of 5 May 2022.

The Company also paid a special dividend of $0.13 per eligible share on 10 March 2022 (approximately $31.585 million).

Outlook for FY2022
Management confirms its full year revenue guidance for FY2022 in the range of $31.3 million to $33.3 million. Full year revenue from the Technology Division is expected to be in the range of $20.2 million to $22.2 million.  It is noted that the attainment of forecast revenue is contingent on the fulfilment of orders expected to be received during Q4 and that supply chains remain unimpeded. To date the Company has successfully managed supplier related issues though it is recognised that the environment continually changes particularly in light of recent lockdowns in some provinces in China.

ENDS

Approved for release by the Board of Directors.


For further information, please contact:

Investor Enquiries

Vanessa Beresford

Media Enquiries

Alexandra Abeyratne

Citadel-MAGNUS Citadel-MAGNUS
vberesford@citadelmagnus.com aabeyratne@citadelmagnus.com
+61 451 422 892 +61 438 380 057

 About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Notice of Extraordinary General Meeting – 22 April 2022

Notice is hereby given that Ava Risk Group (the “Company”) will hold its Extraordinary General Meeting virtually at 11:00am (AEST) on Friday, 22 April 2022 for the purpose of transacting the business set out in this Notice.

Due to continuing circumstances relating to COVID-19, the Meeting is being held by way of a virtual meeting (electronically) using the Lumi AGM technology. Shareholders are urged to attend and vote at the meeting electronically using the Lumi AGM technology or vote by lodging the proxy form attached to this Notice.

Download Notice of EGM here.

Ava Risk Group announces 1H FY22 Results

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) announces its half year results for the six months ended 31 December 2021.

Review Investor Presentation

Review Appendix 4D and 1H FY2022 Financial Report

Highlights

  • Successful divestment of the Services division in October 2021, delivering cash proceeds of $41.9m
  • Group revenue of $20.2m and Group EBITDA of $2.2m, both in line with guidance
  • Technology Division revenue (excluding the IMoD contract) increased 9.6% compared to an average six months’ revenue in FY21, reflecting an increase in order intake
  • Technology Division sales order intake of $10.2m, up 42% compared to the prior year period (pcp)
  • dormakaba global framework agreement signed in December to distribute BQT products internationally, particularly to the US and Europe
  • First Secure Fence licensing agreement signed in Latin America with revenues expected in 1H FY23
  • Global supply chain constraints effectively managed to ensure timely sales order fulfilment
  • Strong financial position with consolidated net cash of $55.4m and no debt as at 31 December 2021
  • FY22 Guidance: Group Revenue of $11.2m to $13.2m for 2H FY22 excluding any contribution from IMoD

Group revenue and EBITDA comparisons to the prior year are distorted by the divestment of the Services Division and revenues from the Indian Ministry of Defence (IMoD). The revenue decline in 1H FY22 compared to 1H FY21 is largely attributable to the Services Division divestment (-$7.3m) and the Indian Ministry of Defence (IMoD) revenue in the prior year (-$7.7m). Although there is no revenue from IMoD in 1H FY22, a further $2.5m remains to be realised on this contract. Similarly, a large part of the EBITDA decline is attributable to the Services divestment (-$1.8m) and IMoD (-$7.7m).

Looking at the Technology Division, excluding revenue from the Indian Ministry of Defence (IMoD) contract, revenue was $9.1m, up 9.6% compared to the average half revenue in FY21, reflecting improved sales performance from FFT. Revenue growth from BQT was impacted by COVID-19 lockdowns in NSW and Victoria and is expected to improve on the back of the lockdowns lifting and the signing of the dormakaba agreement. Importantly, the Company continues to generate positive cash flow from operations. Coupled with the proceeds from the Services Division divestment, Ava is in a strong financial position with cash of $55.4 million and no debt.

The Technology Division’s total sales order intake of $10.2m in 1H FY22, was up 42% compared to the prior year period, driven by increased orders in FFT. The chart on the next page outlines the Technology Division’s sales orders over the past six quarters. Order backlog is $4.2 million, excluding $2.5 million from IMoD. As advised on 22 December 2021, due to COVID-19 related impacts affecting the timing of certain government programs as well as extending global procurement times, the Company is not forecasting any material contribution to revenues in FY22 from IMoD.

Ava Risk Group CEO Rob Broomfield commented: “We are excited about the growth momentum building in our Technology Division which is essentially our business going forward. FFT has shown strong growth in sales orders in 1H FY22 resulting from our investments in business development in the US. Growth in BQT is forecast to recover now the COVID lockdown restrictions have lifted, and further improve as we see traction from the new global dormakaba partnership agreement.

“The scope of the initial Aura IQ orders is being reworked, at the customer’s request, to include integration with fire detection solutions. While this has delayed the receipt of initial orders, we are very encouraged that the integration work will reduce the time and cost to implement our technology during planned conveyor shutdowns. We expect this will accelerate growth opportunities for Aura IQ.

“Our focus during the second half of the year is on the continued growth of our high margin Technology Division solutions. Specific growth initiatives include: completing the integration of Aura IQ with fire detection solutions to drive the commercialisation of our technology; leveraging our global framework agreement with dormakaba to expand BQT solutions in major markets in the U.S. and Europe; and pursuing new licensing opportunities particularly in developing markets in South America and India. Coupled with continued opportunities with our blue chip customer base, we expect these initiatives to grow our revenue to $11.2m to $13.2m in 2H FY22.”

Update on capital return

On 16 August 2021, Ava Risk Group announced its plan to distribute $39.2 million of excess cash to shareholders as a capital return, subject to a favourable class ruling from the ATO. As announced on 22 February 2022, the ATO has subsequently indicated that it plans to treat $7.567 million as capital in nature. Based on this advice, the Board has proposed to make two distributions: a special dividend of $31.585m ($0.13/share) and a capital return of $7.567m ($0.03114/share).

The $0.13/share special dividend, unfranked, is to be paid on 10 March 2022 with a record date of 28 February 2022. The capital return is subject to shareholder approval at an Extraordinary General Meeting on 22 April 2022. Ava Risk Group also undertook an on-market buyback of $1.3 million of its shares during 1H FY22.

Investor webinar

Chairman David Cronin, CEO Rob Broomfield and CFO Neville Joyce will host a Zoom webinar to present the results at 11am AEDT today. To register for the webinar, please select the following link: https://zoom.us/webinar/register/WN_rswh5jB8SjqfjaOWwf9X8w

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Vanessa Beresford Citadel-MAGNUS
vberesford@citadelmagnus.com +61 451 422 892

Media Enquiries
Alexandra Abeyratne Citadel-MAGNUS
aabeyratne@citadelmagnus.com +61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Return of Capital Update & Payment of Dividend

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) todays provides the following update on the previously proposed Return of Capital and the payment of a dividend.

On 16 August 2021, the Company announced its intent to distribute excess cash of $39.2 million to shareholders. The Company proposed that the funds were returned to shareholders as a capital return subject to shareholder approval and the receipt of a favourable class ruling from the Australian Tax Office (“ATO”). The ATO has recently responded to our class ruling application and has indicated that it would be willing to treat $7.567 million of the proposed $39.2 million as capital in nature.

The Board considered a number of options to return excess funds to shareholders and after careful consideration has decided to make two distributions as follows:

  • Special Dividend of $0.13 per share (distribution of approximately $31.585 million)
  • Capital Return of $0.03114 per share (distribution of approximately $7.567 million)

Ava Group Special Dividend

The Company is pleased to announce a Special Dividend. Shareholders at the Record Date of 28 February 2022 will receive an unfranked dividend of $0.13 per share, paid on 10 March 2022.

Capital Return

The Company will seek shareholder approval to reduce the ordinary share capital of the Company by approximately $7,567,000 and such reduction in capital to be effected by the Company paying to each registered holder of a fully paid ordinary share the amount of $0.03114 per share. Shareholder approval will be sought at an Extraordinary General Meeting on 22 April 2022. Further details relating to Capital Return, Record Date and timetable will be provided within a Notice of Meeting which will be issued to shareholders in the near future.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Vanessa Beresford Citadel-MAGNUS
vberesford@citadelmagnus.com +61 451 422 892

Media Enquiries
Alexandra Abeyratne Citadel-MAGNUS
aabeyratne@citadelmagnus.com +61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Q2 FY2022 Trading Update

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its 1H and Q2 FY2022 Trading performance:

  • Reaffirming 1H FY2022 Guidance: Group Revenue of $20.2 million to $21.2 million and Group EBITDA of $2.2m to $2.5m[1]
  • Strong financial position with consolidated net cash of $55.4 million and no debt at 31 December 2021
  • COVID-19: Varied operational impact with delays in delivery and decision-making partly offset by the ability to provide innovative customer solutions, highlighting diverse global footprint and product portfolio
  • Sustained momentum in sales order activity in the Technology Division through Q2 resulting in total sales orders of $4.9 million (year to date = $10.2 million)
  • Completion of a Global Framework Agreement for the supply of BQT products and services with dormakaba International Holding GmbH
  • Successful divestment of the Services division in October 2021, delivering cash proceeds of $41.9 million.

[1] 1H FY2022 guidance assumes no change to the exchange rate at 30 September 2021 with A$1 equal to US$0.74. 1H FY2022 guidance only includes an estimated contribution from the Services Division until 18 October 2021, reflecting the divestment date.

Q2 FY2022 confirmed Technology Division sales orders
During Q2 FY2022 the Technology Division received confirmed sales orders of $4.9 million, resulting in YTD sales orders of $10.2 million.  Order intake for Q2 continued Ava Risk Group’s recent market momentum and represents growth of 63% on the comparable period in FY2021 (42% growth on the prior YTD), driven by increased orders in FFT.

Pleasingly there has been significant growth in FFT sales order intake in the United States.  Total sales orders received in the U.S. during the first half of the year grew by more than 150% compared to the prior year, reflecting the additional investment that the Company has made in sales capability in North America.  Growth in order intake is also well balanced across key industry segments, with particular growth in military installations and solar farm applications.

At the completion of Q2, the Company carried a confirmed sales order backlog of $4.2 million (excluding the Indian Ministry of Defence (“IMOD”) contract).  The backlog reflects confirmed sales orders that are pending fulfillment.  The anticipated fulfillment of the sales orders is set out below:

The Company also maintains an order backlog under the IMOD contract for the licencing of further systems and fulfillment of a seven year maintenance program.  As advised via the ASX on 22 December 2021, due to COVID-19 related impacts, affecting the timing of certain government programs as well as extending global procurement times, the Company is not forecasting any material contribution to revenues in FY2022 from IMOD at this stage.

Global Agreement for the supply of BQT products and services to dormakaba International
At the end of December 2021 Ava Risk Group signed a Global Framework Agreement for the supply of products and services with dormakaba International Holding GmbH. Dormakaba is a global leader in the supply of security access control systems, locks and digital locking systems with sales representatives in 130 countries.

The agreement is effective from 1 January 2022 and enables BQT to sell its products in all jurisdictions in which dormakaba operates, including new markets in the United States and Europe.  An initial order for the provision of stock is expected by the end of January 2022.

Successful divestment of the Services division
As confirmed via the ASX on 19 October 2021, Ava Group completed the sale on its non-core Services division, Ava Global, to TTG Bidco Limited, an entity backed by funds advised by Phoenix Equity Partners (United Kingdom).

The Company received net cash proceeds of US$31.1 million (A$41.9 million) after closing adjustments and settlement of management incentives.  Financial results for the Services division prior to the divestment will be consolidated and reported in the Ava Group financial statements for the six months ending 31 December 2021.

Update on Return of Capital
The Company is still awaiting receipt of a draft Class Ruling from the Australian Taxation Office (“ATO”) prior to progressing the Return of Capital announced on 30 August 2021 and pursuant to Resolution 5 approved by the Shareholders at the Annual General Meeting on 28 October 2021. The Company will provide a further update in respect of the Return of Capital and associated timetable upon receipt of the formal response from the ATO.  The Company re-affirms its intention to distribute $39.2 million (circa 16 cents per share) to its shareholders.

Ava Group CEO Rob Broomfield commented: “During Q2, sales order intake remained strong underpinned by demand for FFT products and services.  COVID-19 continues to have some impact on both FFT and BQT, particularly on supply chains and access to international freight.  Nonetheless, the easing of travel restrictions in New South Wales resulted in an uplift in orders for BQT in November and we expect that momentum to continue into the second half of the financial year.

“Following the successful divestment of the Services Division in October 2021, the Group is focused on delivering its growth strategy in the Technology Division.  The sales opportunity pipeline is strong with a focus on recurring revenue, product licencing and Aura-IQ opportunities.  We continue to invest in our sales capability and the Global Framework Agreement with dormakaba opens access to new markets for BQT products.  Coupled with the existing sales order backlog, the Company is well placed to pursue growth in 2H FY2022.”

Ava Risk Group will release its financial results for the half year ending 31 December 2021 and outlook for the remainder of FY2022 on 25 February 2022.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries

Vanessa Beresford

Media Enquiries

Alexandra Abeyratne

Citadel-MAGNUS Citadel-MAGNUS
vberesford@citadelmagnus.com aabeyratne@citadelmagnus.com
+61 451 422 892 +61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group signs Global Agreement with dormakaba

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it has signed a Global Framework Agreement for the supply of products and services with dormakaba International Holding GmbH effective 1 January 2022.

The global agreement enables BQT to sell its products in all jurisdictions in which dormakaba operates, including new markets in the United States and Europe.  During FY21, BQT recorded sales of $0.5 million with dormakaba in Australia, New Zealand and Canada.  The Company expects to grow this opportunity significantly commencing 2H FY22.

With representatives in 130 countries, dormakaba is a global leader in providing security access control systems, locks, master key systems and digital locking mechanisms.  The agreement with Ava Risk Group is testament to the high quality products which BQT manufactures with particular emphasis being placed on the patented Cobalt range of locks which resolve sideload and misaligned door issues.

Commenting on the agreement, Ava Risk Group CEO Rob Broomfield said, “Signing the Global Framework Agreement with an international leader such as dormakaba is a significant milestone and supports our strategy of expanding into new markets with our leading risk management technologies.  Planning is well advanced to ‘launch’ BQT products in new markets in which dormakaba operates, as well as to support joint marketing initiatives.  Sales under the agreement are expected to commence from January 2022.”

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries

Vanessa Beresford

Media Enquiries

Alexandra Abeyratne

Citadel-MAGNUS Citadel-MAGNUS
vberesford@citadelmagnus.com aabeyratne@citadelmagnus.com
+61 451 422 892 +61 438 380 057

 

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group signs global agreement with dormakaba

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it has signed a Global Framework Agreement for the Supply of Products and Services with dormakaba International Holding GmbH effective 1 January 2022.

The global agreement enables BQT to sell its products in all jurisdictions in which dormakaba operates, including new markets in the United States and Europe. During FY21, BQT recorded sales of $0.5 million with dormakaba in Australia, New Zealand and Canada. The Company expects to grow this opportunity significantly commencing 2H FY22.

With representatives in 130 countries, dormakaba is a global leader in providing security access control systems, locks, master key systems and digital locking mechanisms. The agreement with Ava Risk Group is testament to the high quality products which BQT manufactures with particular emphasis being placed on the patented Cobalt range of locks which resolve sideload and misaligned door issues.

Commenting on the agreement, Ava Risk Group CEO Rob Broomfield said, “Signing the Global Framework Agreement with an international leader such as dormakaba is a significant milestone and supports our strategy of expanding into new markets with our leading risk management technologies. Planning is well advanced to ‘launch’ BQT products in new markets in which dormakaba operates, as well as to support joint marketing initiatives. Sales under the agreement are expected to commence from January 2022.”

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Vanessa Beresford Citadel-MAGNUS
vberesford@citadelmagnus.com +61 451 422 892Media Enquiries

Media Enquiries
Alexandra Abeyratne Citadel-MAGNUS
aabeyratne@citadelmagnus.com +61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

1H FY2022 Guidance and Business Update

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) today provides the following updates:

1H FY2022 Guidance and Outlook
Ava Risk Group is pleased to re-affirm the management guidance for 1H FY2022, subject to unrealised foreign exchange variances, provided in its announcement of 28 October 2021, Q1 FY2022 Trading Update and Outlook.  It is noted that the 1H FY2022 guidance included an estimated contribution from the Services Division, Ava Global, prior to its divestment in October 2021.

Update on Return of Capital
The Company is still awaiting receipt of a draft Class Ruling from the Australian Taxation Office (“ATO”) prior to progressing the Return of Capital announced on 30 August 2021 and pursuant to Resolution 5 approved by the Shareholders at the Annual General Meeting on 28 October 2021.  Additional information has been provided to the ATO in support of Ava Risk Group’s application and the ATO has indicated that it is likely to formally respond to the Company’s application before the end of January 2022.

The Company will provide a further update in respect of the Return of Capital and associated timetable upon receipt of the formal response from the ATO.  The Company re-affirms its intention to distribute $39.2 million (circa 16 cents per share) to its shareholders.

Aura IQ Update
The Company continues to pursue significant commercial opportunities for Aura IQ, a conveyor health monitoring solution for mining houses and bulk material handling facilities.  Following completion of successful Proof of Value trials, key customers continue to progress internal approvals for the deployment of the technology.  Due to delays in customer approvals, the Company now expects to sign multi-year contracts for Aura IQ in early calendar year 2022.

IMOD
Following the highly successful licencing program for the Indian Ministry of Defence’s (IMOD) initial data protection program during FY20 and FY21, the Company maintains order backlog for further systems and will also fulfill a 7 year maintenance program.  Due to COVID-19 related impacts, effecting the timing of certain government programs as well as extending global procurement times, the Company is not at this stage forecasting any material contribution to revenues in FY22 from IMOD.

Q2 FY2022 Trading Update
Ava Risk Group CEO Rob Broomfield commented: “Following the successful divestment of Ava Global in October 2021, the technology division continues to focus on its sales pipeline development and conversion.  Demand for FFT products in the current quarter remained strong and the easing of COVID-19 related restrictions in New South Wales has resulted in improved sales for BQT.  We are seeing encouraging signs in the United States from the recent investments we have made in growing our sales capability, leaving the Company well placed to pursue growth in 2H FY2022.”

Ava Risk Group will provide a further Q2 FY2022 Trading Update on 20 January 2022.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries

Vanessa Beresford

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Alexandra Abeyratne

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 About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com